September 16, 2021 BHS2021-14

Bayhorse Silver Inc. (BHS: TSX-V, BHSIF: OTCQB, 7KXN: FRANKFURT) (the ‘society‘ or ‘Bayhorse‘) has an initial tranche of 8,967,925 units for gross proceeds of $ 1,210,670 of its recently announced unbroken private placement of 12,000,000 units at $ 0.135 per unit for gross proceeds of $ 1,620,000 closed.

Each C $ 0.135 C $ Unit consists of one (1) common share and one (1) transferable common stock purchase warrant, with each warrant exercising in one (1) common share of the Company at an exercise price of $ 0.225 for a period of 24 months from the date of issue. The securities issued are subject to a hold period of four months plus one day from the date of issue.

In addition to any other exemptions available to the Company, all existing shareholders, even those who are not accredited investors, are eligible to participate in the Unbroken Funding under the “Existing Shareholders” exception of National Instrument 45-106 as set out in the Multilateral CSA announced, open note 45-313 in participating jurisdictions.

The funds raised serve to expand the underground drilling program to at least 1,500 meters, the further sorting and processing of the mineral concentrate in the Bayhorse silver mine as well as general and administrative costs.

Bayhorse CEO Graeme O’Neill has subscribed to 6,000,000 units of the placement and funded his subscription through an arranged sale through the facilities of the TSX Venture Exchange (Gypsy Swap). This participation by the CEO of Bayhorse constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Securities Holders in Special Transactions (“MI 61-101”) Minority shareholders’ approval requirements under MI 61-101 excluded, as neither the market value of the shares acquired by the insider nor the consideration paid by that insider for the shares exceeds 25% of the company’s market capitalization.

The company does not base its production decision on a feasibility study of mineral reserves that demonstrate economic and technical feasibility, and points out that any production decision involves increased uncertainty and a specific economic and technical risk of failure. These risks include, but are not limited to (i) a decline in the price of the raw materials produced, namely silver, copper, lead and zinc, due to the pricing used to make a production decision; (ii) non-compliance with the qualities of the material produced within the parameters used to make the production decision; (iii) an increase in mining costs due to changes within the mine during development and mining processes; and (iv) changes in metallurgical recovery that cannot be foreseen at the time of production.

Referral fees may apply for part of the financing that is not used by insiders in accordance with the guidelines of the TSX-V.

Subject to the approval of the TSX Venture Exchange, the company has settled $ 166,685.42 in accrued convertible bonds by issuing 1,389,044 common shares of the company at a price of $ 0.12 per share, which is the closing price of the company’s stock on the settlement date Jan. September 2021. Under the rules of the TSX Venture Exchange, shares in issue are subject to a hold period of four months plus one day from the date of issue.

This press release was prepared on behalf of the Board of Directors of Bayhorse Silver Inc., which accepts full responsibility for its content.

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